IMPACT OF THE CORONAVIRUS PANDEMIC ON THE INDIAN APPAREL & TEXTILE SECTOR

Manufacturing is at a halt, brand stores are temporarily closed, retail jobs are in jeopardy and consumer confidence is shaking – all of this is due to the COVID-19 pandemic. The Indian apparel and textile sector is reeling under the impact of the novel coronavirus...

Due to the nation-wide lockdown to prevent the spread of novel coronavirus, the Indian apparel and textile sector is going through some extremely trying times. The central government had announced a 21-day lock-down starting March 24 to contain the pandemic. On Tuesday, this lockdown was further stretched up to May 3. The sector – which comes in the non-essential category – is likely to be impacted most due to declining demand and restricted supply-chain.

The Indian apparel and textile sector is the fourth-largest producer of textile and garments in the world. The sector contributes 2 percent to the total GDP, employing more than 45 million workers and nurture manufacturing and retail businesses under it. The increase in the lockdown period has only added to the misery of the sector.

According to the Confederation of All India Traders (CAIT), the country’s retail sector, comprising 70 million small, medium and big traders employing 450 million people, undertakes a monthly business of about USD 70 billion (approximately ₹ 5.2 lakh crore), and is one of the most impacted due to the global pandemic.

With around 80 percent of the garment industry mostly micro, small and medium enterprises, which has around 3,700 members employing over 7 lakh people, the Clothing Manufacturers Association of India (CMAI) asserts that most of its members do not have the kind of reserves to see them through 3-6 months.